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WC – Exclusions


What is the AB5 – 1099 Rule?2020-10-22T22:07:31+00:00

Earlier this year, the CA legislature passed a law further qualifying who may legally be considered an Independent Contractor vs. who must be an employee.  Per the CA Legislature, the person is an employee – unless the individual meets the three criteria below:

  1. The person under their own control… meaning, the company does not stipulate when, how or under what conditions the work in accomplished.  For example, if hours are set by the company – this condition is NOT met.
  2. Is the work performed by the person outside of the usual business of the company?  If yes, then this person can be classified as a 1099, if no, this is an employee.  For example, if a tree trimming company wants someone to pick up tree debris or other task associated with the services marketed by the company, the individual must be an employee.  If a tree trimmer wants a bookkeeper, they can be 1099 as they are not offering the same services as the company.
  3. The person is does this type of work as their own business.  For example, following the scenario above – a bookkeeper would normally have multiple bookkeeper clients and this would be the bookkeeper’s profession or trade.  Now, if the bookkeeper was being hired by an accounting venture for bookkeeping, this gets a little cloudy.  This is why all 3 of these criteria must be met to pass this litmus test.

For more information… visit here – AB5


Why will there be an audit?2019-05-27T18:02:58+00:00

Audits are very common in insurance.  Many policies require an audit as the premium rate is based on a fluid number such as payroll or sales.  The initial quote at the beginning of the policy term is an estimate or best guess for the coming year.  Since Workers Comp is a required coverage when a business employs workers, premiums are rated and based on anticipated payroll.  As this is a mandatory coverage that few business owners (if any) relish paying, audits are used to verify the correct premium is paid to cover the risk exhibited with the employees working.  There are several ways to make the audits less troublesome, give us a call to go over these.

What is Employer Liability Coverage & do I have to have it?2019-05-27T18:03:18+00:00

In California, Employer Liability coverage is commonly packaged together with employee protection in a Workers Compensation policy.  So, yes – as Workers Compensation is required by law for any employer in California.  Employer Liability covers the employer from liability in the event an employee is injured on the job.  It is an important part of WC to insulate an employer from liability.

Does General Liability insurance cover all liability?2019-05-27T18:03:26+00:00

General liability coverage is the broadest liability coverage available, but no it will not cover all liability.  Each carrier will add their own exclusions to coverage that differ depending on industry and specific risk.  Professional, Cyber, and Product are specific types of additional Liability coverage available to supplement a general liability policy.


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